During 2020–2024, the list of material payments underwent changes; in particular, Royalty for transportation and payments by companies under List 1 and List 2 were added to the list of material payments.

In 2024, the list of material payments was as follows:

In 2024, 55 companies, 3 JVAs and 1 PSA (hereinafter referred to as 59 material reporting companies) were identified that were subject to reconciliation of tax and non-tax payments in favour of the state. All reporting companies, according to the data from state authorities, paid a total of UAH 168,977,293.22 thousand (including budget reimbursement of VAT) as material types of payments. As part of the preparation of the EITI Report 2024, information about their payments in favour of the state was received from 51 of the 59 reporting companies.

In order to assess the materiality of the revenues in favour of the state and determine the material types of payments and reporting companies, the requests were formed and sent to the STS, SCS, SGS and PFU. In 2024, all state authorities that are managers of information on the payment of material types of payments in favour of the state provided the required data for the purposes of reconciling tax and other revenues.

Thus, the Independent Administrator reconciled data on state revenues from 51 material companies in the amount of UAH 165,975,379.34 thousand (according to the information provided by state agencies). As a result, the completeness of the reconciliation was 98.22% in terms of state revenues. The total revenues from the reporting companies that did not provide the necessary information for reconciliation is UAH 3,001,913.88 thousand or 1.78%. For comparison, the completeness of the reconciliation of payments in the EITI Report 2023 was 98.67%.

The highest reconciliation completeness rate among the reporting extractive industries was achieved by public sector companies in the metal ore and oil and gas industries (100% and 100%, respectively).

Of the total material revenues to the state from 59 reporting extractive companies in the amount of UAH 168,977,292.22 thousand:

The stages of assessing the materiality of government revenues and identifying material payment streams and reporting companies covered by the reconciliation of government revenues in the EITI Report for 2024 are illustrated in the figure below.

59 companies were identified in 2023 that were subject to reconciliation of tax and non-tax payments in favour of the state. All material reporting companies, according to the data from the state authorities, paid the total of UAH 147,337,171.65 thousand for material types of payments (including VAT refund from the state budget). As part of the preparation of the EITI Report 2023, the information on their payments in favour of the state was received from 53 of 59 material reporting companies.

To assess the materiality of revenues in favour of the state and determine material types of payments and material reporting companies, the requests were formed and sent to the STS, SCS, the Ministry of Economy and the SGS. In 2023, all state authorities that are managers of information on material types of payments in favour of the state provided the necessary data for the purposes of reconciliation of tax and other revenues.

Therefore, the Independent Administrator reconciled data on state revenues from 53 material companies in the amount of UAH 145,371,584.17 thousand (according to information provided by the state authorities). As a result, the completeness of the reconciliation was 98.67% in terms of state revenues. The total amount of revenues from material reporting companies that did not provide the necessary information for reconciliation is UAH 1,965,587.48 thousand or 1.33%.

The highest reconciliation completeness was demonstrated by public sector companies in the metal ore and oil and gas industries (100% and 100%, respectively).

Of the total amount of UAH 147,337,171.65 thousand of material receipts in favour of the state from 59 material reporting extractive companies:

The stages of assessing the materiality of government revenues and identifying material payment streams and reporting companies covered by the reconciliation of government revenues in the EITI Report for 2023 are illustrated in the figure below.

In 2022, 65 companies were identified that were subject to reconciliation of tax and non-tax payments in favour of the state. All material reporting companies, according to the data from the state authorities, paid a total of UAH 185,384,062.65 thousand for material types of payments (including VAT refund from the state budget). As part of the preparation of the EITI Report 2022, information on their payments in favour of the state was received from 59 of the 65 reporting companies.

To assess the materiality of revenues in favour of the state and determine material types of payments and material reporting companies, the requests were formed and sent to the STS, SCS, the Ministry of Economy and the SGS. In 2022, all state authorities that are managers of information on material types of payments in favour of the state provided the necessary data for the purposes of reconciliation of tax and other revenues.

Therefore, the Independent Administrator reconciled data on state revenues from 59 material companies in the amount of UAH 175,281,911.64 thousand (according to information provided by the state authorities). As a result, the completeness of the reconciliation was 94.55% in terms of state revenues. The total amount of revenues from material reporting companies that did not provide the necessary information for reconciliation is UAH 10,102,151.01 thousand or 5.45%.

As no payment reconciliation was conducted for the EITI Report 2021, no comparison can be made in terms of reconciliation completeness. It should be noted that, due to russia’s full-scale invasion of Ukraine, the number of reporting companies decreased compared to 2020. At the same time, for comparison, the completeness of the reconciliation of payments in the EITI Report 2020 was 100%.

The highest reconciliation completeness rate among the reporting extractive industries was achieved by the metal ore mining industry, as all 16 material reporting companies provided information on tax and other payments, which made it possible to reconcile 100% of revenues in favour of the state from companies in this industry. The coal mining industry ranked second, as 9 of the 11 material reporting companies provided information on payments in favour of the state, enabling the reconciliation of 96.69% of revenues. The lowest reconciliation completeness rate was recorded in the oil and gas industry, where 34 of the 38 material reporting companies provided information on payments, which enabled the reconciliation of 93.64% of the total amount of revenues.

Of the total material revenues in favour of the state from 65 material reporting extractive companies in the amount of UAH 185,384,062.65 thousand:

The stages of assessing the materiality of government revenues and identifying material payment streams and reporting companies covered by the reconciliation of government revenues in the EITI Report for 2022 are illustrated in the figure below.

Considering the provisions of the Terms of Reference, neither the reconciliation of data on payments in favour of the state nor the analysis of discrepancies was performed for the EITI Report 2021. Instead, payment data were disclosed unilaterally, without reconciliation.

In 2021, 57 material reporting companies were identified for the purposes of reconciliation of tax and non-tax payments in favour of the state. All material reporting companies, according to data from state authorities, paid a total of UAH 211,508,834.62 thousand in material types of payments (including VAT refunds from the state budget).

As part of the preparation of the EITI Report 2021, reports on payments in favour of the state / consolidated reports on payments in favour of the state were submitted by 27 of the 57 material extractive companies covered by this EITI Report 2021. Information on one additional company was provided through the consolidated report of its parent company.

The stages of assessing the materiality of government revenues and identifying material payment streams and reporting companies covered by the reconciliation of government revenues in the EITI Report for 2021 are illustrated in the figure below.

To assess the materiality of revenues in favour of the state and identify material types of payments and material reporting companies, the inquiries were sent to the State Tax Service, State Customs Service, Ministry of Economy and Geology Service.

In 2020, all government agencies that oversee information on material types of payments in favour of the state, provided the necessary data for the purposes of reconciling tax and other revenues. In 2020, 54 material reporting companies were identified that were subject to reconciliation of tax and non-tax payments in favour of the state. According to government agencies, all material reporting companies paid a total of UAH 182,857,572.64 thousand for material types of payments (including budget reimbursement of VAT). In 2020, all material reporting companies identified during the materiality assessment provided their data for the EITI Report 2020.

Thus, the total revenues of UAH 182,857,572.64 thousand received from all 54 material reporting companies in favour of the state have been reconciled, which means 100% completeness of the reconciliation in 2020. For comparison, the completeness of the reconciliation of payments in the EITI Reports 2018 and 2019 was 99.06%.

Of the total UAH 182,857,572.64 thousand material revenues in favour of the state from 54 material reporting companies:

The stages of assessing the materiality of government revenues and identifying material payment streams and reporting companies covered by the reconciliation of government revenues in the EITI Report for 2020 are illustrated in the figure below.